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Best Practices for Relocation: Multiple Bids for Household Goods Moves

Is your RMC helping keep relocation costs in check by taking multiple bids?

It is no secret that competition leads to various benefits, including significant savings for the end user. We have seen the opposite when a company monopolizes a product. Having one choice has never worked out well for consumers. The same applies to corporate relocation and household goods moves.

Many relocation management companies (RMCs) are either owned by or affiliated with van line companies. Therefore, when a client company wants to move its employees, the employees do not have a choice of van lines. The RMC and the van line know that the transferee is at their mercy concerning price, scheduling, and customer service.

However, some RMCs use a multiple-bid process to ensure that transferees get the best price and service. There are some significant benefits to having van lines compete for the relocation business:

  • It encourages the providers to “sharpen their pencils” to provide the lowest reasonable cost
  • It ensures adherence to a company’s relocation policy guidelines
  • It is a way to eliminate any service day surprises

This is all accomplished by having at least two carriers meet with the transferee to create estimates based on the amount that needs to be moved, what requires special handling, and where it needs to be relocated. Then, the RMC audits the estimates to look for inconsistencies, for example:

  • Do the pickup and delivery dates correspond with the move?
  • Does one company estimate more crates than another?
  • Does one company show specialty items that the other company may have missed?
  • How close are the estimated prices?
  • Auditing the bids ensures an apples-to-apples understanding of the van line options and helps weed out potential overages.

    Every carrier knows that its goal is to secure the business. As a result, it offers honest and precise quotes without extra costs. Several relocation policies involving moving companies also come with a maximum estimate guarantee. This helps ensure the relocation process follows industry standards and offers the most suitable solution.

Companies that utilize a multiple-bid process save an average of $1,547 per move! This breaks down to an average of $1,473 to $1,604 for household goods movement and $175 to $289 for car shipments per move.

Although cost is necessary, the experience of the person being transferred is also crucial. Allowing them to meet with various moving companies will help them feel more involved in the moving process. Sometimes, the person being transferred can select the moving company they prefer. 

Even if an estimate is slightly higher than another, if it falls within a certain percentage (based on the client company’s relocation policy) of the lower bid, a transferee may select the more expensive carrier if he or she feels more comfortable with that specific household goods mover. This promotes an overall positive experience because transferees are happier when they think they are heard throughout the relocation process. We all know that happy employees are more productive.

GMS Can Help Companies Save

Global Mobility Solutions (GMS) was the first to introduce the “Freedom of Choice” approach in relocation services. By implementing industry best practices and offering various options from different providers, GMC has helped client companies and their employees reduce costs for services such as moving household goods and obtaining mortgages. GMS is dedicated to creating innovative workforce mobility programs to simplify and enhance the relocation process for clients and their staff.

This innovative method reduces business costs and provides employees with greater autonomy and flexibility during their relocation. By empowering employees to select the services that best suit them, GMS ensures that each person feels appreciated and supported throughout the relocation process. This personalized strategy results in a seamless employee transition and a more streamlined company relocation process. With GMS at the helm of forward-thinking workforce mobility initiatives, businesses can save costs while ensuring employees enjoy a positive and hassle-free relocation journey.

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Summer Move on Tap? Start Planning Now

African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Many relocating employees choose a summer move over any other time of the year. However, several factors make this time of the year the busiest for relocation. As a result, the household goods (HHG) moving industry is often running at nearly full capacity to meet demanding schedules.

The current COVID-19 pandemic presents a significant number of additional considerations. However, transferees who plan ahead and learn basic guidelines for safe HHG moves can expect a smooth summer move.

Factors That Result in Preferences for a Summer Move

1. School Breaks

Families with children prefer to stay in place during the school year. The vast majority of school years follow certain patterns, with holiday or seasonal breaks. The months of June, July, and August are traditionally times when schools are not in session. This includes colleges as well, where students are often on the move back home once they have taken their last final exam. By planning a summer move, schoolwork is less likely to face any disruptions.

2. Weather Patterns

In much of the United States, the months of May through September offer warm temperatures, grounds covered with grass, and a number of bright sunny days. In comparison, other months offer less than ideal weather conditions. Snow and ice make travel difficult, streets and sidewalks may be muddy, and days may be gray with sleet and snow showers.

3. Common Beliefs and Practices

Many home buyers and sellers believe the best seasons for real estate transactions are spring and summer. Although other seasons offer a number of benefits, a summer move is often the result of a busy spring and summer home buying and selling season.

How to Plan Ahead for Your Summer Move

Companies that are planning to relocate employees should be aware of several important points that can make for a smooth and easy summer move. Communication is important to ensure that every relocating employee has a good experience. Employees who have a good experience in their relocation process will arrive at the destination ready to start their new job.

Top 4 Points to Ensure a Smooth Summer Move

1. Engage your Relocation Management Company (RMC) as Early as Possible

Employers looking to arrange an employee transfer or a new hire that will be relocating, early notification to the RMC is best. A best practice is to integrate all of the company’s pre-decision services directly with the RMC. This will help ensure the RMC has visibility for any upcoming summer move, and initial planning can quickly proceed.

2. Leverage Multiple Bids to Obtain the Lowest Costs

With HHG moving demand at its peak, RMCs should provide multiple bids for a summer move. However, this requires companies to provide enough time for the RMC to obtain these bids. The last week of June is the busiest week for moves. Companies that do not provide enough time for the RMC to obtain competitive bids may miss out on substantially lower costs for the summer move. In general, RMCs who obtain multiple bids for a summer move can save companies over $1,500 per move.

3. Providing a Range of Dates is Better Than a Specific Date

As with many things in life, the ability to be flexible works well for planning a summer move. HHG moving companies appreciate flexibility for their scheduling needs. Transferees also have many other things to take care of related to their relocation. Relocating employees who can provide a range of dates for pickup and delivery are often likely to have their household goods picked up and delivered on their preferred date or the nearest alternative date.

4. When Time is of the Essence, Services Can be Provided at Additional Cost

Some situations require an employee to be on site in a new location by a specific date. Critical delivery dates may arise due to home sale closings, expiring leases, and company requirements. These situations may require services that cost extra, above and beyond the traditional summer move cost. Companies that need a transferee to be on site in a new location by a certain date should provide enough time for the employee to make the move.

NOTE: Transferees that are given very short notice for a summer move often face significant issues in terms of cost to move and space for their household goods on moving company vans and trucks. Late requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. As a result, transferees with 2,500 pounds of household goods may have no other option but to pay for the extra unused space in order to meet the deadline set by their company. Best practice is to provide a quote that covers only the space needed for the transferee’s household goods. This way, they transferee is not paying extra for space they cannot use.

What Should Employers do About a Summer Move?

Employers should contact their RMC as early in the relocation process as possible. Best practice is to work with the RMC for pre-decision services. To ensure this engagement starts as early as possible, employers should create an Application Programming Interface, or relocation API.

An API provides a framework for different computer systems to communicate and share information. Employers with a relocation API will have their internal Human Resource Information System (HRIS) integrated with their RMC’s relocation technology. RMCs with industry-leading relocation technology solutions have designed their platforms to quickly and easily integrate with each client’s HRIS.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance and insight as to best practices for obtaining multiple bids and arranging for a summer move. RMCs can help clients and transferees understand how to communicate important dates and other information relating to their summer move with HHG moving companies.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to leverage the multiple bid process to save on a summer move. Our team can help your company follow industry best practices to communicate early, incorporate flexibility, and understand all of the various options that are available for relocating employees facing a summer move.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning best practices relating to arranging a summer move for your relocating employees, or give us a call at 800.617.1904 or 480.922.0700 today.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Domestic Relocation Challenges Domestic Relocation Tips Household Goods Relocation Challenges

Ensuring a Safe Household Goods Move During COVID-19

The young Family is enjoying their new Home

If you need to schedule a household goods (HHG) move during COVID-19, you are not alone. Millions of people move every year, and the month of May is often the start of the busy moving season. In fact, May is “National Moving Month,” and the month of June is usually the busiest month for people who want to move. People who have sold their home, purchased a new one, or are moving into a new apartment during this time may not know how the current pandemic will impact their plans.

The American Moving & Storage Association (AMSA) has issued guidance for consumers to ensure safety for all involved in the moving process. Moving companies such as North American Moving Services have issued specific COVID-19 Business Continuity Plans to help everyone to remain safe during this global pandemic.

AMSA Guidance for Consumers who Move During COVID-19

For consumers who will move during COVID-19, the following guidance provides clear direction. It also includes easy steps to take to ensure everyone’s safety throughout the entire process.

  • Communication is important for everyone
    • If anyone in your home is isolating or under quarantine, call immediately to reschedule
  • Avoid the natural tendency to shake hands when you greet the moving team
    • Smile, greet warmly, and then give proper social distancing
  • Provide direct access to sinks, water, soap, paper towels, hand sanitizer, and trash bins
    • Moving teams should have additional supplies if needed
  • Always use fresh supplies of packing materials
    • Rolls of tape, packing papers, shipping and storage boxes, and any other supplies

What Does This Mean for Your Move During COVID-19?

Many GMS clients have employees, new hires, and transferees in various stages of their HHG move during COVID-19. These services are often considered essential, and people may have no other choice but to proceed with their scheduled move.

We Can Get Through This!

GMS knows this is a difficult time for everyone. However, we can and we will all get through this together. We need to focus on doing the right thing every time. Following AMSA guidance to ensure a safe HHG move during COVID-19 will provide peace of mind for the moving team and those who are moving.

What Should Employers do for Employees who Move During COVID-19?

Employers should share as much information with their employees, new hires, and transferees about how they can arrange a safe move during COVID-19 as possible. The AMSA guidance for arranging a safe move should be shared, along with any other information that may be helpful such as how they can create a video survey for their household goods prior to the move.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to share helpful information with employees, new hires, and transferees on their HHG moving process. Our team can help your company understand how to incorporate the AMSA guidance on arranging a safe HHG move during COVID-19 into your relocation program.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to learn more about how your company can communicate the AMSA guidance on arranging a safe HHG move during COVID-19, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Household Goods

Why You Should Plan Ahead for Summertime Household Goods Moves

family moving out of home
African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Relocating employees often face the prospect of summertime household goods moves. Families with children prefer to move while schools are not in session. Moving during the summer means children will not miss any classes, and the move will not disrupt schoolwork. Also, many home buyers and sellers believe that spring and summer are the best seasons for real estate sales. As a result, over 70% of all moves occur between Memorial Day and Labor Day weekend.

During summer, most moving companies are extremely busy with full schedules. Also, transferees often compete with others who move during this timeframe. College students, seasonal workers, and many other people prefer to move when weather is usually warm and pleasant. As a result, they compete with transferees for space in moving company vans and trucks for summertime household goods moves.

Best Practices for Summertime Household Goods Moves

Companies should plan ahead for summertime household goods moves. Best practices for companies that need to move relocating employees during summer include:

1. Contact your Relocation Management Company (RMC) as early in the process as possible.

Best practice is to integrate your company’s pre-decision process with your RMC. This allows the RMC to have visibility for any potential summertime household goods moves.

2. RMCs should provide companies with options to obtain the lowest cost for moves.

Best practice is to provide multiple bids for summertime household goods moves. However, the RMC will not be able to obtain multiple bids if time does not permit. The busiest week for moves is the last week of June. Companies should be aware that contacting an RMC to arrange moves without enough notice may prevent them from obtaining competitive bids. As a result, the RMC will not be able to find lower costs for the move. Generally, the ability to obtain multiple bids will save companies a significant amount for each move.

3. Best practice is to provide flexibility on dates for summertime household goods moves.

Flexibility on dates helps the moving company with their scheduling. It is also beneficial for transferees since they have many things to take care of related to their relocation. To obtain the lowest cost bids on moves, transferees should provide alternate pickup and delivery dates. Moving companies try to meet preferred dates or nearest alternative dates for relocations.

4. Timing can be a significant issue for some transferees.

Critical delivery dates due to expiring leases, home sale closings, and company requirements to be on site in a new location may require an extra-cost service. Companies that need a transferee to be in a new location by a specific date must provide enough time for them to make the move.

Transferees that are given very short notice for their summertime household goods moves often face significant issues in terms of cost to move and space for their goods on moving company vans and trucks. Last minute requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. Transferees with 2,500 pounds of goods may have no choice except to pay for the extra unused space in order to meet the due date set by the company. Best practice is to provide a quote that covers only the space needed for the goods. As a result, transferees would not pay extra for space they cannot use.

What Should Employers do About Summertime Household Goods Moves?

Employers should engage their RMC as early in the relocation process as possible, preferably at the pre-decision stage. An easy way to ensure this engagement starts as early as possible is to create an Application Programming Interface, or relocation API. An API provides a framework for different computer systems to communicate and share information. Employers with a relocation API will have their internal Human Resource Information System (HRIS) integrated with their RMC’s relocation technology. RMCs with industry-leading relocation technology solutions have designed their platforms to quickly and easily integrate with each client’s HRIS.

Employers should work with a qualified and experienced Relocation Management Company (RMC). RMCs provide guidance and insight as to best practices for obtaining multiple bids and arranging for summertime household goods moves. RMCs can help clients and transferees understand how to communicate important dates and other information relating to summertime household goods moves with moving companies.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to leverage the multiple bid process to save on summertime household goods moves. Our team can help your company follow industry best practices to communicate early and incorporate flexibility. We can also help your company understand options that are available for relocating employees facing a summertime move.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. GMS is dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning best practices relating to summertime household goods moves, or give us a call at 800.617.1904 or 480.922.0700 today.

Electronic Logging Devices and the Impact on the Household Goods Moving Industry

"18 Wheeler shot from a low perspective with a Canon digital camera. Exposure is 1/80s, f/22, ISO100. Work path is included."

Beginning in December of 2017, all drivers with applicable tractors had to install and operate Electronic Logging Devices (ELDs). These devices replace the outdated and cumbersome log-book that drivers had been using for several years.

The ELD offers many benefits for both drivers and their respective carriers

Benefits of Electronic Logging Devices

  • Limits the hours a driver can be behind the wheel, which should reduce the number of Tractor Trailer accidents.
  • The device does all of the work and drivers no longer need to keep a log.
  • The Federal Motor Carrier Safety Administration (FMCSA) will be able to track and report on driver trends and statistics with greater accuracy.

However, despite the many benefits that ELDs provide, there are several disadvantages which have negative impacts on the household goods moving industry.

Disadvantages of Electronic Logging Devices

  • Drivers may not drive/work for more than 11 hours in a 24 hour period. There is also mandatory rest time per week. These new restrictions will lengthen the time it takes for the driver to make it to destination, which may increase other costs such as per diems, corporate housing, and rental cars.
  • ELDs start tracking with the pre-trip inspection, which had not typically been included in log books. This will reduce the length of time a driver will be on the road.
  • When the ELD notifies the driver that they are done for the day, they must stop immediately or be subject to fines from not just FMCSA, but also their own van lines.
  • Routes with heavy motor vehicle traffic will be greatly impacted because ELDs measure total time on the road whether the driver is moving or at a stand-still on the freeway. Traffic jams will cause drivers to time out faster.

What should employers with relocating employees expect with ELDs?

Employers who have plans relocate employees should prepare for longer times related to their relocating employee’s household goods move. This may impact employee starting times at their new location, as well as lead to higher costs for the relocation.

What else should employers be aware of?

Driver and Labor Shortage: An additional challenge facing the Household Goods Moving Industry is the driver and labor shortage. Over 40% of drivers are over 50 years old, and are aging out of the business at a very high rate due to the physical demands of the job. The industry has been facing this problem for the past 10 years, and attracting more talent continues to be challenging. According to the American Transportation Research Institute (ATRI), only 4.4% of drivers are in the 20-24 year age range. This could impact the availability of drivers to move household goods for relocating employees, possibly lengthening the time needed to reach the final destination and delay positon start times.

Tax Rule Impact: Also, employers should be aware of the tax rule change impact on moving costs. Employers who choose to gross up moving costs for relocating employees will face higher costs as this benefit is now taxable. IRS Code Section 217 no longer creates a tax payer deduction for the Qualified Moving Expenses of household goods moving costs and final move expenses. These formerly non-taxable employee reimbursements and payments to third party vendors are now taxable income to the employee. If employers choose not to gross up, then going forward these expenses should be treated just like other taxable relocation expenses – reported as earnings to the employees, subject to income and payroll taxes, and reported on their annual W-2 as wages.

What should employers do?

Employers should review their hiring and relocation plans and timelines to account for possible delays related to any household goods moving processes, and the cost impact of the tax rule change eliminating the tax payer deduction for Qualified Moving Expenses.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with household goods moves and everything a relocating employee and their family need during the process. We can help your company understand how to plan for the impact of ELDs as it relates to your relocation program, and the cost impact of tax rule changes. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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